HMRC IR35 Tax Investigation
A contractor has the double whammy of a HMRC IR35 tax investigation and no work so no money coming in.
Here‘s another tale of IT unemployment, in response to our article ‘Being Unemployed During the Downturn’.
Sean (not his real name) came to Britain for an opportunity. However, he has found that he would have been better off staying home.
Not only that, but he finds that there is some legislation called IR35.
Anyway, I‘ll let him tell his own tale, and make my comments at the end.
Technical Project Manager’s Contract Terminated
“I have been contracting since 1997. My last contract was at Barclays Bank
as a Technical Project Manager. However, they had to terminate my contract because of new employment laws.
“I have not been successful in getting a contract, or indeed permanent work, since then. Now I find myself under an IR35 investigation.
“I originally came from Ireland in 1993 to seek success because the UK was a low tax, dynamic, economy. However, now the situation has very much reversed”.
IT Contractor Comment
I‘m curious as to why Barclays Bank had to terminate you because of new employment laws. Perhaps it is down to IR35.
It seems to be the case, that there are loads of contractors who would take a permanent job. However, they just can‘t get one. It‘s a fact that many employers, and even agencies, have grave reservations about employing ex-contractors in a permanent role.
This gives the lie to those who say that contractors are ‘disguised employees‘. That’s because any amount of disguise doesn‘t seem to be able to get them permanent jobs.
It‘s about time that the Government realised that IT contracting is a very different profession than that of an IT employee. Both are very necessary for the market – well in normal times anyway.
Contractor IR35 Investigation
It‘s very bad luck, Sean that you are now under a HMRC IR35 tax investigation. You came to Britain because you considered it ‘a low tax, dynamic economy’.
You must have lived in one of those parts of Ireland that don‘t get the UK TV channels.
I must presume that you are not an IPSE member, as they have a great record when helping those investigated for tax including IR35.
Unfortunately, they don‘t let you join their scheme after a HMRC IR35 Tax investigation starts. I‘m sure that they could offer some advice on the matter though.